It basically turns into part of their down payment when they exercise and buy the property. 

Hi all, placing a 11 unit multifamily under contract tomorrow. in college town in Washington county, PA, has 11 units, laundry facility, parking spot for each unit. brick building with gently sloped roof. roof redone 4 years ago, electrical redone 2 years ago. was under very poorly rated PM in area, met the guy when seeing facility and seemed very eager to do the minimum.  

It's a puzzle that should induce a coma, but I actually find the thought exercise of it all... stimulating.

Look at it as an exercise or as a game.

Now if you are talking about wanting to exercise your option to buy at the agreed upon price and the appraisal comes in lower it would be on you to make up the difference or walk away.

"My pit bull is friendly and gentle.

Did you "rent" the property under a lease/option or lease/purchase agreement and now the tenant/buyer is exercising the option to purchase?  

It might be a good exercise to figure out how to pull out some equity vs selling it to re-invest in a different property that could be more passive income without all of the hassles.

I wanted to exercise the option of not living in the rental, although I'm not opposed.

I suppose that's the goal of this exercise!